Mr. David Ostlie, president of Energy Performance System, Inc. (EPS) tried to introduce a new concept of Whole – Tree EnergyTM (WTE) technology to the market. There are three key features that make this technology different (a) using whole hardwood trees to produce electricity, (b) drying the whole trees to avoid emissions, and (c) implementing three – stage combustion for efficient combustion process. The objective of this project is to commercialize Whole – Tree EnergyTM(WTE) technology.
Even though studies have revealed successful results as well as feasibility of large – scale electricity production, there are some concerns regarding this technology. 1. The environment and pollution
Comparing to conventional coal – fired power plants, WTETM produces significantly less SO2, NOX, ash and CO2; therefore, reduce air pollution, acid rain, and global warming. 2. Jobs and economics development
By building WTETM plants, there will be over 600 jobs available for locals. This will be economically beneficial for the community.
3. Buying interest of utilities
T here is an opportunity to either retrofitting to use in WTETM technology or building new plants to use WTETM technology.
Issues in this case and alternatives to solve the issue WTETM produces (1)
In a utility’s decision whether to buy and use the WTETM technology (a) who comprises the buying center and (b) what aspects of the buying decision does each look at?
Due to prospective utility, customers are organizational markets, which have decision – making unit (DMU)1 in the organization or company. The process of buying is made professionally by this decision – making unit (DMU) and based on rationality. Members of a buying center of each utility consist of production division (users and deciders), R&D division (influencers and deciders), purchasing division (buyers and gatekeepers), and executive committee (approvers). Additional details in utility’s buying decision are as follows:
The users (production division) are the persons in organizations use the WTETM technology directly. Sometime, users who buy WTETM technology are impersonating to define specifications of fuel supply for producing electricity power.
The influencers and deciders (R&D division and production division) are a group of people in an organizations who have either direct or indirect in terms of defining specifications of fuel supply in order to produce electricity. They also provide the necessary information regarding this matter. •
The buyers (purchasing division) are a group of people in the organizations who focus on purchasing procedures, benefits of this energy production, any purchasing conditions or requirements for this particular product etc. In addition to purchasing process and timeline, this group is expected to negotiate for the best price available comparing to other alternative sources in the market. •
The deciders are a team production division and R&D division. They will make a final decision whether to buy or use this technology based on scientific information. •
Once the decision is made by the deciders, executive committee (the approvers), they will then officially confirm a final decision and make an announcement to all concerns. If the deciders do not agree with this purchase request, it will be declined straight away.
The gatekeepers (purchasing division) control purchasing process. The procedure starts from collecting relevant and important information about WTETM technology. Then, circulates this information to the related divisions. Finally, once the decision is made, the gatekeepers to process payment to the company. (2) What are some of the key elements EPS should have in developing its strategies to market WTETM to prospective utility buyers?
As we know that a WTETM plant produces far less pollution than comparable fossil – fuel plants. The proposed energy strategy draws on Sustainable development 6which sustaining finite resources...
References: Lamarre L. Electricity From Whole Trees. Electric Power Research Institute (Internet). 1994 (cited 2014 Sep
Wikipedia. Sustainable development (Internet). 2014(cited 2014 Sep 11). Available from: www.wikipedia.org/
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